Free Real Estate Purchase & Sale Agreement: PDF & Template

If you’re looking to invest in real estate, it helps to understand the paperwork that makes a deal official. Whether you're wholesaling your first deal or buying your tenth rental property, one legal document shows up in nearly every transaction: the real estate purchase and sale agreement. It's the contract that spells out who’s buying, who’s selling, and all the terms that get you from accepted offer to closing day.

But if you’re new to investing, this form can feel confusing. What exactly goes into a purchase and sale agreement? When do you use one? And how do you make sure it protects you as the investor?

This guide answers all of that and more. We’ll show you how this agreement works, what should be included, how to use it for different investing strategies, and how to avoid rookie mistakes. We’ll even give you a free real estate purchase and sale agreement PDF template to download and help you take action today.

Here’s what we’ll cover:  

• What Is a Purchase and Sale Agreement in Real Estate?
• [FREE Download] Purchase and Sale Agreement Template for Investors
• What Does a Purchase and Sale Agreement Include?
• Common Contingencies in Purchase and Sale Agreements
• Example of a Purchase and Sale Agreement in Action
• Are Purchase and Sale Agreements Binding?
• Purchase and Sale Agreement FAQs

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What Is a Purchase and Sale Agreement in Real Estate?

A purchase and sale agreement is the official real estate contract that locks in a real estate deal between a buyer and a seller. It spells out exactly what’s being sold, for how much, and under what conditions, turning a verbal agreement into a legally binding roadmap that guides both parties all the way to closing.

Still confused? Don’t worry, many new investors are asking the same question: What is a purchase and sale agreement exactly? Think of it as the master contract. It kicks in after the offer is accepted and spells out everything from the closing timeline and contingencies to who pays for what during the deal. Both parties sign this agreement, and once it’s executed, the contract becomes enforceable by law.

A sales and purchase agreement or sale and purchase agreement (they’re the same thing) is much more detailed than an initial offer letter. While an offer shows intent, a PSA locks in the responsibilities of both buyer and seller. This includes items like purchase price, earnest money deposit, inspections, financing, and legal remedies if either party backs out.

If you’re serious about real estate investing, you need to get familiar with the purchase and sale agreement. Whether you're locking up a property to wholesale, lining up a fix and flip, or building a long-term rental portfolio, this is the contract that makes every deal real. It lays the groundwork for the entire transaction, and the more deals you do, the more important it becomes to understand how it works inside and out.

[FREE Download] Purchase and Sale Agreement Template for Investors

If you're investing in real estate (especially as a wholesaler, flipper, or buy-and-hold landlord), having the right contract is non-negotiable. That’s why we’re giving you a completely free purchase and sale agreement template designed specifically for investors. This isn't your average agent-approved form. It's built for speed, simplicity, and strategy.

Whether you’re writing your first offer or locking up your tenth deal, this real estate contract template saves you time and helps you look like a pro. And the best part? It’s completely free.

Ready to use a free purchase agreement that’s actually built for investors? Click the free real estate purchase agreement download below to get started.

What Does a Purchase and Sale Agreement Include?

A well-drafted purchase and sale agreement lays out every critical detail of the real estate transaction. Remember, there’s no room for guesswork when you’re dealing with a legally binding contract. Whether you’re buying a flip, assigning a wholesale deal, or locking in a rental, every investor should understand what goes into these agreements.

Here’s a clause-by-clause breakdown of what’s typically included in an agreement of purchase and sale so you know what to expect before signing on the dotted line.

Property Description

This section provides the physical and legal details of the property being sold. It includes the street address, parcel number, and a legal description pulled from the county records. Whether you're purchasing a single-family home or a four-unit rental, clarity here ensures there’s no confusion about what is being transferred in the property sale agreement.

Purchase Price and Financing Terms

Here’s where the buyer’s offer amount is written out in full, along with how the purchase will be funded. The agreement will specify whether it's an all-cash purchase, conventional loan, FHA financing, or seller financing. A clear breakdown helps prevent surprises during underwriting or closing and is essential in any solid sales and purchase agreement template.

Earnest Money Deposit

The earnest money deposit shows the buyer’s seriousness. It’s a small percentage of the purchase price (typically 1% to 3%) and is held in escrow. If the buyer backs out for a reason not covered by a contingency, they may forfeit this deposit. But if the deal moves forward or is canceled within legal bounds, it’s either credited or refunded.

Closing Timeline and Possession Date

Real estate moves fast, so this clause specifies the expected date of closing and when the buyer will take legal possession. In some cases, possession happens immediately after recording; in others, sellers may stay in the home for a few days post-closing. Your agreement of purchase and sale must reflect this, so both parties are aligned on timing.

Contingency Clauses

This is your legal “out” section. Common contingencies include inspection, financing, and appraisal clauses. These give the buyer time to complete due diligence—and walk away if issues arise—without losing their earnest deposit. These are especially important in purchase and sale agreements for flips or older properties.

Buyer and Seller Obligations

This clause outlines what each party is responsible for. That might include paying specific closing costs, making certain repairs, or disclosing known defects. Clear buyer and seller obligations protect both sides from last-minute surprises and disputes.

Default and Termination Terms

What happens if someone doesn’t hold up their end of the deal? This section explains the remedies if either party defaults. That could mean keeping the earnest money, pursuing legal action, or canceling the contract altogether. A well-written>property sale agreement will lay out these terms clearly to avoid ambiguity.

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Common Contingencies in Purchase and Sale Agreements

Contingencies are some of the most powerful tools in any purchase and sales agreement. They protect both the buyer and seller by setting clear conditions that must be met for the deal to move forward. If those conditions aren’t satisfied, the agreement can usually be canceled without penalty. Think of them as your built-in buffer—giving buyers room to inspect the property, line up financing, and double-check the numbers before everything becomes final.

Understanding the common clauses in a standard purchase and sale agreement is essential. Here's what you need to know about the most important types of contingencies found in a purchase and sale agreement for real estate.

Inspection Contingency

An inspection contingency gives buyers the chance to thoroughly evaluate the property's condition before committing to the deal. During this time, a professional home inspector checks everything from the roof to the plumbing to uncover potential red flags. If major issues turn up—like water damage, electrical hazards, or foundation cracks—the buyer can renegotiate terms, ask for repairs, or cancel the contract without penalty. This clause is especially important when buying older homes or properties that haven’t been maintained well.

Financing Contingency

Most financing clauses are specifically designed to help buyers secure mortgage approval. If the lender denies the loan for any reason—insufficient credit, low appraisal, job change—the buyer can cancel the agreement without losing their earnest deposit. This protects buyers from being forced into a deal they can’t afford and gives sellers confidence that a qualified buyer is pursuing the purchase.

Appraisal Contingency

Before a lender approves financing, they want to confirm the property is worth what the buyer agreed to pay. That’s the purpose of the appraisal. If the home is valued below the contract price, this clause gives the buyer options—they can try to negotiate a lower price or walk away entirely. Without this protection, the buyer could be stuck covering the difference out of pocket, which can add thousands in unexpected costs.

Contingencies don’t just protect buyers; they also provide structure and clarity that keep real estate deals moving forward fairly. Used properly, they’re one of the most valuable tools in any investor’s contract toolkit.

Example of a Purchase and Sale Agreement in Action

If you’ve never used one before, seeing an example of a purchase and sale agreement in the real world can make a big difference. It’s one thing to read about legal clauses; it’s another to understand how those terms play out in different types of real estate deals. Whether you're wholesaling your first property, flipping a fixer-upper, or locking down a long-term rental, each scenario requires different strategies, protections, and negotiation points.

Below are three examples showing how a sample purchase and sale agreement works depending on your investing strategy. These mirror what you'll find in our downloadable contract and are designed to help you feel confident whether you're assigning, flipping, or buying to hold. Each example highlights why the details in your agreement matter and how they can protect your time, money, and deal flow.

Wholesale Deal: Assigning a Contract for Profit

An investor finds a distressed single-family property listed at $110,000. After some back-and-forth, they get the seller to agree to $95,000 and sign an agreement of purchase and sale real estate form. This contract includes an assignment clause (which allows the investor to assign the deal to someone else) and a 10-day inspection period to perform due diligence. They also include a $100 earnest money deposit, just enough to secure the deal.

What’s important here is that the contract clearly states it’s assignable. Without that clause, the wholesaler wouldn’t be legally allowed to transfer the deal. After locking it up, they send the details to their cash buyers list and get someone to buy it for $105,000. The contract is assigned, the investor walks away with a $10,000 assignment fee, and the buyer moves forward with the closing. This example of a purchase and sale agreement shows why investors need flexibility and speed, and why those terms must be in writing.

Fix and Flip Deal: Managing Risk and Timeline

A house flipper spots a property with potential: it’s listed at $165,000 and needs work. After crunching numbers, they submit an offer of $145,000. Their purchase and sale agreement includes several critical clauses: a 14-day inspection contingency, a financing clause for their hard money loan, and a 60-day closing timeline. They also add a $1,500 earnest deposit to show they’re serious.

Once under contract, the inspection reveals outdated electrical wiring. Thanks to the inspection contingency, the buyer is able to renegotiate the price to $140,000. This example purchase and sale agreement highlights the importance of giving yourself an exit if things don’t check out. Without that clause, they would’ve had to take on a bigger rehab risk or lose their deposit. The flip eventually sells for $225,000, and the investor walks away with a healthy profit.

Buy-and-Hold Rental Property: Evaluating Long-Term Cash Flow

Let’s say an investor targets a duplex priced at $285,000. They submit a full-price offer, but structure the sample purchase and sale agreement with specific clauses: a financing contingency, a 21-day close, and a tenant lease review contingency. The contract also requires the seller to provide 12 months of rent rolls, tenant leases, and maintenance records within 7 days of acceptance.

After reviewing the paperwork, the buyer learns one unit is on a month-to-month lease, which adds the risk of vacancy. They use that information to negotiate a $5,000 credit at closing. This example of a purchase and sale agreement shows how rental investors protect their cash flow by requiring due diligence documentation upfront. Without those contract terms, they might have walked blindly into unstable income, and that can kill long-term returns.

Are Purchase and Sale Agreements Binding?

Signing a purchase and sale agreement is more than just agreeing on a price—it’s the moment your deal becomes legally real. This contract outlines exactly what both sides are responsible for, helping prevent confusion or conflict down the road. That’s why having a well-crafted real estate purchase agreement template matters. It keeps everything transparent and helps make sure everyone’s on the same page from day one.

Let’s break down when a psa purchase sale agreement becomes enforceable and what happens if either side tries to walk away early.

When Does a PSA Become Binding?

A sale agreement form becomes legally binding the moment both parties sign the document and any initial conditions are fulfilled. This usually includes the submission of an earnest money deposit and a written agreement on key terms like closing date, contingencies, and price. Once those pieces are in place, the property sale agreement template becomes the framework for the transaction, and both sides are expected to follow through in good faith.

What Happens If a Party Backs Out?

If one party tries to exit the agreement without meeting the agreed-upon contingencies or just cause, there can be consequences. For buyers, walking away without a valid reason can mean forfeiting their earnest money. For sellers, backing out might expose them to breach of contract claims. In some cases, a court could even force the transaction to move forward or award damages to the wronged party. Bottom line: treat your PSA like the legal commitment it is.

That’s also why having a customizable property sale agreement template tailored to your investing strategy is so important. Whether you’re wholesaling, flipping, or buying rentals, you need the terms that protect your deal and your money.

Purchase and Sale Agreement FAQs

If you're new to real estate investing, it's normal to have questions about purchase and sale agreements. Below are quick answers to some of the most common questions asked by new investors looking to understand this essential contract.

Do I need a lawyer to use a purchase and sale agreement?

While not always required, having an attorney review your purchase agreement form can help ensure you're protected, especially if you're investing in a new state or using unfamiliar terms.

Is there a free contract for selling a house?

Yes, many investors use a free contract for selling a house like the one we provide here at Real Estate Skills. It’s customizable, beginner-friendly, and designed to protect both parties.

What should I look for in a good purchase agreement form?

Make sure it includes a clear property description, purchase price, contingencies, financing terms, and the rights and obligations of both parties.

Is a purchase and sale agreement required to close a real estate deal?

Yes. Without a signed purchase and sale agreement, there's no formal contract binding the buyer and seller. It’s a critical step in every real estate transaction.

How long does a purchase and sale agreement remain valid?

The agreement remains in effect until the closing date or until either party legally cancels it under a contingency clause or by mutual consent.

What happens after the purchase and sale agreement is signed?

Once signed, the buyer typically deposits earnest money, begins inspections, and secures financing. The contract then guides the transaction through closing.

Final Thoughts on Purchase and Sale Agreements

If you’ve made it this far, you now have a strong understanding of what a purchase and sale agreement is, how it works, and why it’s such a critical tool in real estate investing. Whether you’re wholesaling properties, flipping houses, or building a rental portfolio, this one contract keeps your deals legally protected and professionally structured from start to finish.

We walked through each of the key sections of a PSA, broke down common contingencies, showed you real-world examples, and even gave you a free template to use in your next deal. As you continue growing as an investor, mastering documents like this will give you the confidence to move faster, negotiate smarter, and close deals with far less stress.

And remember, understanding the paperwork is just one part of the journey. If you want to learn how to find deals, use contracts correctly, and scale your investing business the right way, our program teaches you how to do it step-by-step. Download the template above, put it to work, and take action on your next real estate opportunity.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.